There are fundamental differences among inventory performance measures and where their use is appropriate. As T. M. Whitin noted in his seminal 1953 work, The Theory of Inventory Management: When an "out-of-stock" condition arises for some military item, the problem is quite different from that of the private entrepreneur.. .The military situation is conceptually similar to that of the private entrepreneur, but the costs of depletion, aside from the greater difficulties of measurement, may be of a much greater magnitude than is at all conceivable in private business. If important items of equipment are not available when needed, the fate of the nation may be at stake.
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